5 Oversold Stocks to Buy Now ($TSLA, $WKHS, etc…) - YouTube

hey what's going on traders thanks for checking  out this video my name isr avis from master the  

market and this is going to be a quick video  talking about five stocks that are approaching  

oversold territory on their charts meaning that  they've been dragged down a little bit by this  

recent pullback in the overall market and they're  likely going to make a nice bounce in the near  

future so to kind of show you and explain what  i mean by them being dragged down by the overall  

market you can see that by looking at the spy etf  which is the etf for the s p 500 index there's  

been a little bit of a pullback over the past week  or so and more specifically it's been mostly in  

the technology sector of the market so if we look  at stocks like apple for example uh we saw apple  

sell off from about 145 down to a low today of  about 118 dollars per share another good example  

is microsoft same thing with microsoft it's had a  pretty big sell-off compared to the overall market  

and there's going to be a lot of stocks  like this that kind of fit the same criteria  

that have had a pretty big sell-off and are  going to be good opportunities to buy into them  

on these pullbacks while they're approaching  their oversold levels in the market if we look at  

the heat map over the past week you can see that  again apple down 5.5 percent microsoft down over 4  

we see some red in google some red and amd nvidia  amazon tesla down over 12 paypal down about 13  

all of these are really well known and reputable  companies that are for the most part just being  

dragged down by the overall pullback in the  market and that's exactly what you want to  

look for when you're buying into stocks that are  approaching their oversold levels on their charts  

okay now with all of that being  said the first stock on this list  

that i think is going to be a really good  buy opportunity is actually going to be apple  

if we look at the chart for apple you can see  again this sold off from a high of about 145  

down to a low today of 118 it's already  started to have a really nice recovery  

to the upside it formed a very bullish  candlestick pattern here on the daily chart  

and more importantly the reason that this  is such a low stress trade to get into  

really in my opinion anywhere below 130 dollars  per share is because apple is apple and at the  

end of the day everybody knows apple it's a very  well-known reputable company and recently actually  

when the stock was up here at about 140 per share  they actually put out their earnings report and  

contrary to what you might think by looking  at the chart since that earnings report it was  

actually a very positive earnings report and they  reported record-breaking revenues for the company  

so in my opinion once the entire technology sector  starts to rebound apple is going to be leading  

that bounce back to the upside and is going to  make a really good opportunity to buy into this  

stock at or around these current levels okay so  stock number two is actually going to be tesla  

now tesla has been a beast lately it's pretty  consistently outperformed the market whenever  

we see the s p 500 up one percent for example it's  pretty common to see tesla being up two three even  

four percent however that ends up being kind of  a double-edged sword because of the volatility  

in tesla because now that the overall market has  been down a little bit recently we saw tesla take  

a pretty big hit it fell from a high of about 900  per share down to a low today in the low 600s and  

again just like apple it is starting to bounce  back up but according to its rsi it is still down  

in the oversold territory um and in fact if you  look at the rsi currently at about 32 on the daily  

chart the last time that the rsi was this low in  tesla was back in early march of 2020 during the  

peak of the coronavirus pandemic obviously  we can see how well it was able to recover  

from those lows and looking at tesla's chart over  the past couple of months it's been very bullish  

so i'm hoping that now that it's back into these  oversold territories it's going to bounce back  

up and continue that bullish run to the upside  and in my opinion in the very near future we're  

going to see tesla back above 800 per share now  stock number three that is approaching oversold  

levels and it's going to be a good opportunity  to dip by potentially is going to be riot  

riot is a bitcoin related stock that moves pretty  similarly to the price action of bitcoin itself  

so if you're somebody that is interested  in cryptocurrency and bitcoin investing  

another way that you can actually profit  from the overall price action in bitcoin  

without buying bitcoin itself is to look  for stocks that are related to blockchain  

and bitcoin and of course that is  the category that riot falls under  

you can see that obviously ride is not quite at  oversold levels but its rsi is getting down to  

the lowest point that it's been in a while and it  has had a pretty big selloff from its recent highs  

so i think there's a good chance for a bounce  back up in the near future as long as the price  

of bitcoin is able to recover back up as well to  kind of give you a comparison of the bitcoin chart  

you could see that riot was spiking up to new  highs just as bitcoin was able to break out over  

that 50 000 mark since then we've seen a little  bit of a pullback in bitcoin which is really the  

sole reason for ride pulling back as well so again  if you're bullish on bitcoin and you believe it's  

going to be back over fifty thousand dollars per  bitcoin in the near future then it is pretty safe  

to assume that we're also going to see riot take  a nice recovery bounce back to the upside likely  

getting back to 60 or above in the near future and  in fact it actually has a gap here on the daily  

chart uh which looks to be at about 60 dollars per  share gaps on these charts tend to get filled over  

time so i think for now being at about 48 dollars  per share 60 is a good short term price target for  

this stock if it is to bounce back up and you may  actually want to look at that as a potential level  

of resistance because many times when a stock does  fill a gap to the upside it ends up doing what is  

known as a gap close reversal so it will close  this gap up here to about 60 dollars per share  

and again that may end up becoming a level of  resistance and the stock may reverse back to the  

downside from there but of course that's something  to worry about in the future if we do see a  

nice bounce up and for now this is just a good  opportunity to watch this stock and potentially  

buy into this pullback to profit from it once  it recovers along with the price of bitcoin  

okay so that's going to lead us to stock  number four which is starting to get to  

oversold territory and that is going to be mrk  now mrk which is the symbol for merck healthcare  

is in my opinion setting up to be a really good  swing trade opportunity really just based on  

the technicals alone so if we look at the price  action since they started to recover after the  

big sell-off that pretty much the entire market  saw from the coronavirus pandemic back in 2020  

you can see that over the past months it's been  able to kind of trade in this same price range  

with pretty clear levels of support  and resistance so we can see that  

resistance is about at 85 per share and  support is down here at about 74 per share  

of course there was one brief breakout above  that resistance line here uh but it pulled back  

down and there was a few other times where that  seemed to be a pretty clear level of resistance  

and the same is true for the support down here at  about 74 there's been a few times where it bounced  

almost perfectly off of that price level which  is really where the price of the stock is kind of  

consolidating at right now so in my opinion this  is setting up for a really great risk reward ratio  

because we can use this support level as not only  an opportunity to buy into the stock but it's also  

going to be a risk level so if it happens to break  below that support level we can use that breakdown  

below support to cut our losses and move on from  the trade so in this case you would be risking  

maybe a dollar or two dollars per share at the  most and the upside potential assuming that it's  

able to stay within this channel again and bounces  back up to the resistance in the near future  

is anywhere from 10 to 11 dollars per share so  mrk is definitely a stock that i'll be looking  

to take advantage of in the near future being that  it is such low risk and at least from a technical  

standpoint it's looking like it's going to  be a really good swing trade opportunity  

okay and that's going to lead us to stock  number five which is going to be wkhs  

now for any of my gamblers out there this is going  to be right up your alley this is a little bit  

higher risk higher reward than the others on this  list and you can see pretty clearly that wkhs or  

workhorse had a pretty big sell-off the downside  today closing down almost 50 percent on the day  

now i'll go ahead and put a screenshot  of the article up on the screen right now  

but i believe this sell-off was due  to not receiving some kind of deal  

that they were expecting to do with usps and  from what i understand this was a huge deal  

and the reason for a lot of this bullish  momentum that we've seen over the past months  

was simply in anticipation that this deal was  going to go through so now that the deal is off  

the table there was obviously a huge sell-off in  the stock and quite frankly there is a good chance  

that this will continue to downtrend over the next  couple of days over the next couple of weeks even  

over the next couple of months now that's exactly  why i mentioned this as being a higher risk higher  

reward setup i do think eventually it is going to  offer some good opportunities for a bounce play  

uh that may be at ten dollars per share  that may be at the low that it hit  

uh during the day today which was  about twelve dollars per share  

or 12.50 per share but for now simply because this  is significantly oversold now on both the daily  

and the four-hour time frames it's definitely  going to be one that i'll keep on my watch list  

in the near future in case it is able to find  some support and start to bounce back up to 20  

25 per share okay so i hope you found this video  helpful if you did please make sure to give the  

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link below but anyway until next video thanks  for watching and good luck with your trading